NEW YORK, May 5 /PRNewswire-FirstCall/ -- HMS Holdings Corp. (Nasdaq: HMSY) today announced its financial results for the first quarter ended March 31, 2008.
For the first quarter of 2008, revenue increased 20.8% to $38.9 million, compared with $32.2 million for the same period a year ago. Net income for the quarter was $3.2 million or $0.12 per fully diluted share compared to net income of $3.0 million or $0.11 per fully diluted share for the same period a year ago. Adjusted EBITDA for the quarter increased 6.6% to $9.3 million versus $8.8 million for the first quarter of 2007.
"We are pleased that 2008 has gotten off to a fast start and are reaffirming our full year guidance of revenues of $170 million (+16%), adjusted EBITDA of $49 million (+21%), and EPS of $0.73 (+28%)," said Robert Holster, Chairman and CEO of HMS Holdings Corp.
HMSY will be hosting its first quarter 2008 results conference call with the investment community on Monday, May 5, 2008 at 9:00 am Eastern Time. The conference call number is US/Canada: 1 (877) 272-8465 Int'l/Local Dial-In: (706) 634-1355 Participant Code: 43873156. A slide presentation will accompany the conference call and may be accessed through our website at http://www.hmsholdings.com/news/quarterly_reports.asp.
A conference call replay will be available beginning 5/5/2008 1:00 PM EDT through 5/12/2008 11:00 PM EDT. To listen to the replay of the call, dial: US/Canada: 1 (800) 642-1687 Int'l/Local Dial-In: (706) 645-9291 Participant Code: 43873156 or visit our website at http://www.hmsholdings.com/news/quarterly_reports.asp.
The HMS Holdings Corp. Form 10-Q for the year ended March 31, 2008 will be filed and available on our website http://www.hmsholdings.com on or about May 15, 2008, and will contain additional information about our results of operations for the fiscal year to date. This press release and the financial statements herein will be available at http://www.hmsholdings.com for at least a 12-month period. Shareholders and interested investors are welcome to contact HMSY Investor Relations at 212-857-5986. Following the filing of the Form 10-Q, corporate executives will be available to respond to inquiries from shareholders and interested investors.
About HMS Holdings Corp.
HMS Holdings Corp. (Nasdaq: HMSY) is the nation's leader in cost management, coordination of benefits, and program integrity services for government healthcare programs. HMS serves the Medicaid programs of 40 states, 74 Medicaid managed care plans, the Centers for Medicare and Medicaid Services (CMS), and Veterans Administration facilities. HMS helps ensure that healthcare claims are paid correctly and by the responsible party. As a result of the company's services, government healthcare programs recover over $1.0 billion annually, and obtain access to data that helps them prevent billions of dollars more in erroneous payments.
This press release includes presentations of earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Adjusted EBITDA represents EBITDA adjusted for share-based compensation expense. EBITDA is a measure commonly used by the capital markets to value enterprises. Interest, taxes, depreciation and amortization can vary significantly between companies due in part to differences in accounting policies, tax strategies, levels of indebtedness and interest rates. Excluding these items provides insight into the underlying results of operations and facilitates comparisons between HMSY and other companies. EBITDA is also a useful measure of the Company's ability to service debt and is one of the measures used for determining debt covenant compliance. In addition, because of the varying methodologies for determining share-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding share-based compensation expense from EBITDA enhances the ability of management and investors to compare our core operating results over multiple periods with those of other companies. Management believes EBITDA and adjusted EBITDA information is useful to investors for these reasons. Both EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be viewed as an alternative to GAAP measures of performance. Management believes the most directly comparable GAAP financial measure is net income and has provided a reconciliation of EBITDA and adjusted EBITDA to net income in this press release.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of HMSY, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to (i) the information being of a preliminary nature and therefore subject to further adjustment; (ii) the uncertainties of litigation; (iii) HMSY's dependence on significant customers; (iv) changing conditions in the healthcare industry which could simplify the reimbursement process and adversely affect HMSY's business; (v) government regulatory and political pressures which could reduce the rate of growth of healthcare expenditures and/or discourage the assertion of claims for reimbursement against and delay the ultimate receipt of payment from third party payors; (vi) competitive actions by other companies, including the development by competitors of new or superior services or products or the entry into the market of new competitors; (vii) all the risks inherent in the development, introduction, and implementation of new products and services; and (viii) other risk factors described from time to time in HMSY's filings with the SEC, including HMSY's Form 10-K for the year ended December 31, 2007. HMSY assumes no responsibility to update the forward-looking statements contained in this release as a result of new information, future events or otherwise. When/if used in this release, the words "focus", "believe", "confident", "anticipate", "expected", "strong", "potential", and similar expressions are intended to identify forward-looking statements, and the above described risks inherent therein.
SOURCE HMS Holdings Corp.